ASX / MEDIA RELEASE
28 APRIL 2016

COCHLEAR HOSTS INVESTOR DAY
Cochlear Limited, Sydney, 28 April 2016 (ASX:COH): Cochlear Limited is today hosting analysts toan investor day at its global headquarters in Macquarie University. Attached is a copy of the
management presentations that will be made on the day.

For further information, please contact:
Analysts
Kristina Devon
Head of Investor Relations
Email: kdevon@cochlear.com
Ph: + 61 2 9611 6691

Media
Piers Shervington
Senior Manager Corporate Affairs
Email: pshervington@cochlear.com
Ph: +61 2 9425 5416

Ends

Page 1 of 1

Agenda8.30 – 8.50am

Welcome & overview of day
Review of strategic priorities

Chris Smith
CEO & President

8.50 – 9.45am

R&D and product portfolio

Jan Janssen
SVP Design & Development,
Clinical & Regulatory

9.45 – 10.00am

Morning Tea

10.00 – 10.45am

Asia Pacific strategy – Australia &China

Dig Howitt
President, Asia Pacific10.45 – 11.15am

US direct-to-consumer marketing

Patricia Trautwein
VP, Marketing – North America

11.15 – 11.45am

US recipient services

Rene’ Courtney
VP, Customer Experience &Recipient Services –Cochlear
Americas11.45 – 12.00pm

Wrap up and final formal Q&A

Chris Smith &Neville Mitchell – CFO

12.00 – 1.30pm

Tour – manufacturing & hearing hub

1.30 – 2.20pm

Lunch

2.30pmBus departs for Sydney CBD

2016 Investor Day
28 April 2016
Strategic Priorities
Chris Smith
CEO & President

Cochlear’s leadership team

Chris Smith

Neville Mitchell

Tony Manna

Richard Brook

Dig Howitt

Rom Mendel

CEO/President

Chief Financial Officer andCompany Secretary

President, North America

President, European Region

President, Asia Pacific Region

General Manager, Cochlear
Bone Anchored Solutions

Jan Janssen

Greg Bodkin

Senior Vice President, Design
and Development

Senior Vice President,
Manufacturing & Logistics

David HackshallAmanda Lampe

Katharine McLennan

David Morris

Jim Patrick

Lisa Emerson

Chief Information Officer

Senior Vice President Global
Marketing and Corporate Affairs

Senior Vice President
People & Culture

Chief Strategy Officer

Senior Vice President, Chief Scientist

Vice President, Quality

AgendaIntroduction & Strategic priorities

Chris Smith – CEO & President

R&D & review of product portfolio

Jan Janssen – SVP Design &Development, Clinical & Regulatory

APAC strategy - Australia and China Dig Howitt – President, Asia Pacific
Break
US Direct-to-consumer

Patricia Trautwein – VP, Marketing –Cochlear Americas

US recipient services

Rene’ Courtney – VP, Customer
Experience & Recipient Services –Cochlear Americas

Wrap up and Q&A

Chris Smith – CEO & President
Neville Mitchell – CFO

Tour – manufacturing & hearing hub
Lunch

Overview• Cochlear Limited (ASX:COH) isthe global leader in implantable
hearing devices– Cochlear implants– Bone conduction implants– Acoustic implants• ~ 2,800 employees• Direct operations in 20+ countries• Products sold in 100+ countries

Our Mission
We help people hear and be heard.
We empower people to connect
with others and live a full life.
We transform the way people
understand and treat hearing loss.
We innovate and bring to market arange of implantable hearing
solutions that deliver a lifetime ofhearing outcomes.

Hearing Loss: Market Opportunity

Over 5% of the world’s population - 360 million people has disabling hearing* loss (328 million adults and 32 million children).1

Nearly 1 out of every 3 people over the age of 65 areaffected by hearing loss. It affects communication and cancontribute to social isolation, anxiety, depression and cognitive
decline.2

Market penetration3
1.
2.
3.
*

Who.int. WHO | Deafness and hearing loss [Internet]. 2015
Who.int. WHO | 10 facts on deafness [Internet]. 2015.
Market penetration. This figure is a global estimate based on Cochlear sourced data.
Disabling hearing loss refers to hearing loss greater than 40 decibels (dB) in the better hearing ear in adults and a hearing loss greater than 30 dB in the better
hearing ear in children.

Strategic Platforms

Focus on the Customer
Grow theCore

Build aService Business

Shape the Organisation

Value Creation

1. Grow the Core
 Innovative technology
 Increased awareness Improved access Business model innovation

2. Build a Service Business Recipient engagement
 Connectivity; both
Recipient and Clinics
 Optimise upgrades Enhanced digital services

3. Shape the Organisation
 Globally integrate enabling
activities Targeted field expansion
 Deep market penetration
 China and emerging markets
Malaysia
Operations

 Building capabilities

4. Value Creation
 Partnerships/Alliances Drive global efficiency
and effectiveness Focus

FY16 Financial Outlook
Re-iterate full year net profit guidance range of$180-190m, up 23-30% on FY15

Full year forecast assumes a weighted average rate of
74c USD/AUD FX rate (72c as at Feb16 result)2016 Investor Day
28 April 2016
Cochlear Research & Development
Jan Janssen SVP Design & Development,
Clinical and Regulatory

Overview
1. Introduction to R&D at Cochlear
2. Why does Cochlear invest in R&D?
– The role of Research & Development @ Cochlear

3. What has R&D delivered for Cochlear?
– Overview of current product portfolio

4. Future technology Directions– Insight in the Cochlear technology pipeline

Cochlear’s R&D Commitment

Annual R&D Investment (A$m)

In FY15 Cochlear invested ~A$130m in
Research & Development (including Clinical,
Regulatory and Quality)

Global Innovation Network• Over 350 R&D staff in international locations• Main R&D site co-located with Australian Hearing Hub• Over 100 Research Partners in 20 countries• Global network of Design Partners and Suppliers

Research & Development at Cochlear
Basic
Research

AppliedResearch

DesignValidation
Studies

Research &Technology
Development

Investigational
DeviceProduct
Development

Post Market
Studies

Products
Technology
Research

Technology
Development

Why does Cochlear invest in R&D?
The role of Research & Development @ Cochlear

Role of Product Innovation at Cochlear
1. Maintain “Technology Leadership” to support Cochlear’s
market leadership – with focus to lead in areas that are mostvaluable to our customers and professionals
2. Grow the Implantable Hearing Solutions (“Core”) market byremoving barriers to growth (e.g. fear to lose residual hearing,
variability of outcomes)• creating opportunities for growth (e.g. expanded indications)•

3. Create opportunities for future business (Horizon 2 & 3) byleveraging R&D capabilities outside the current core

Role of Product Innovation at Cochlear
1. Maintain “Technology Leadership” to support Cochlear’s
market leadership – with focus to lead in areas that are mostvaluable to our customers and professionals
2. Grow the Implantable Hearing Solutions (“Core”) market byremoving barriers to growth (e.g. fear to lose residual hearing,
variability of outcomes)• creating opportunities for growth (e.g. expanded indications)•

3. Create opportunities for future business (Horizon 2 & 3) byleveraging R&D capabilities outside the current core

Life-changing outcomes for Cochlear’s
customers across all age groups

Life-changing outcomes …
and remaining challenges

Hearing
Outcomes

Optimised
LifestyleHearing
Indications

Clinical/Self
Management

Role of Product Innovation at Cochlear
1. Maintain “Technology Leadership” to support Cochlear’s
market leadership – with focus to lead in areas that are mostvaluable to our customers and professionals

Horizon 1
R&D

Horizon 2
R&D

Horizon 3
R&D

0 … 3 year

3 … 7 year

7+ year

The combination of very high quality level expectations, the need touse cutting edge technology to meet customer’s needs and the stringent
regulatory environment for “Active Implantable Medical Devices” can leadto substantial development timelines and requires long-term planningRole of Product Innovation at Cochlear
1. Maintain “Technology Leadership” to support Cochlear’s
market leadership – with focus to lead in areas that are mostvaluable to our customers and professionals
2. Grow the Implantable Hearing Solutions (“Core”) market byremoving barriers to growth (e.g. fear to lose residual hearing,
variability of outcomes)• creating opportunities for growth (e.g. expanded indications)•

3. Create opportunities for future business (Horizon 2 & 3) byleveraging R&D capabilities outside the current core

Role of Product Innovation at Cochlear:
Eliminate and reduce hurdles
•
•
•
•
•
•

Fear of surgery
Loss of residual hearing
Variability of outcomes
Size and Aesthetics
Complexity of the intervention
Cost of the intervention

Role of Product Innovation at Cochlear:
Eliminate and reduce hurdles

SPrintSound Processor

Nucleus 6
Sound Processor

Role of Product Innovation @ Cochlear
1. Maintain “Technology Leadership” to support Cochlear’s
market leadership – with focus to lead in areas that are mostvaluable to our customers and professionals
2. Grow the Implantable Hearing Solutions (“Core”) market byremoving barriers to growth (e.g. fear to lose residual hearing,
variability of outcomes)• creating opportunities for growth (e.g. expanded indications)•

3. Create opportunities for future business (Horizon 2 & 3) byleveraging R&D capabilities outside the current core

Role of Product Innovation @ Cochlear

What has R&D delivered for Cochlear?
Overview of current product portfolio

Cochlear’s Implantable Hearing Solutions
Conductive/Mixed

Sensorineural
125

Frequency (Hz)1000

8000 125

30

8000

30
Bone Conduction Implants

Electro-Acoustic
Cochlear Implants

Hearing Loss (dB HL)

Middle Ear Implants

Hearing Loss (dB HL)

Frequency (Hz)1000

Middle Ear Implants

Direct Acoustic
Cochlear Implants

Cochlear Implants
Cochlear Implants

120

Nucleus® Systems
with Hybrid Mode120

Baha® Systems

MET® & Carina®
Systems

Codacs™ System

State-of-the-Art Cochlear Implant portfolio• Thinnest cochlear implant on the market• Most reliable implant• Cochlear’s implants are available with a range ofelectrode arrays:• Contour Advance – peri-modiolar electrode for
precise stimulation of the hearing nerve• Slim Straight – thin, atraumatic lateral wall electrodeCI512 ‐ Nucleus Profile with
Contour Advance electrode• Hybrid-L – hearing preservation electrode• Auditory Brainstem Implant electrode

State-of-the-Art Cochlear Implant portfolio

CP920/910 ‐ Nucleus 6
Sound Processors

CI512 ‐ Nucleus Profile with
Contour Advance electrodeN6 with Acoustic Component
for Hybrid Hearing• Smallest Sound Processor• SmartSound iQ with
SCAN technology• True Wireless 2.4 GHz• Hybrid option• Advanced data logging

Nucleus 6 – New benchmark for
Hearing in the Real World
Market research: key customer needs relate to theneed to hear well in the real world:

Customer Insights• Understand people in background noise: classroom,
restaurant, ...
• Have a conversation on the phone• Hear people at a distance (meeting, classroom)• Avoid uncomfortably loud sounds• Hear outside when it’s windy• Watch television without missing words• Minimise investment in “Assistive Listening Devices”
Nucleus 6 addresses these needs with two unique solutions
and set the new benchmark for hearing in the real word:
1. SmartSound iQ with SCAN
2. True Wireless

Technology

Step-by-step improvement of hearing in thereal world with pre-processing technology

Slow

Fast

Nucleus 6 includes a full suite ofpre-processing technologies

Tri‐Loop Gain control
Slow

MediumFast

Automation of pre-processing in Nucleus 6:
breakthrough in hearing performance

Slow

MediumFast

Scene Classifier (SCAN)

Nucleus 6 True Wireless technology –state-of-the art wireless audio streaming

2.4 GHz
True Wireless

Nucleus 6
Phone Clip

TV Streamer

Mini Mic+ Digital sound quality+ Integrated receiver+ Affordable transmitters+ No “relay” neckloop device

Nucleus 6 True Wireless technology enables
large improvement in noisy situations

Mini Mic Benefit

Sentences presented @65 dB SPL
in Competing Noise (n=16)

SNR  +15 dB+10 dB+5 dB dBA 0 dB

Competing Noise Level
Data courtesy of Dr. Jace Wolfe, Hearts of Hearing, Oklahoma City, USA-5 dB-10 dBState-of-the-Art Cochlear Implant portfolio

CP920/910 ‐ Nucleus 6
Sound Processors

N6 with Acoustic Component
for Hybrid Hearing• Smallest Sound Processor• SmartSound iQ with SCAN
technology• True Wireless 2.4 GHz• Hybrid option• Advanced data logging• True Wireless 2.4 GHz
accessories: Phone
Clip, Mini Mic and TV
Streamer• Remote Control• Remote Assistant• Aqua+ swim
accessory

CI512 ‐ Nucleus Profile with
Contour Advance electrode

Nucleus 6 Remote Control

Aqua+ accessory

State-of-the-Art Cochlear Implant portfolio

CP920/910 ‐ Nucleus 6
Sound Processors

N6 with Acoustic Component
for Hybrid Hearing

Custom Sound

Nucleus Fitting Software

CI512 ‐ Nucleus Profile with
Contour Advance electrode

Cochlear Link

Nucleus 6 Remote Control

Aqua+ accessory

CR220 Intra‐Op AssistantState-of-the-Art Baha portfolio

Baha 5 Sound Processor

BI300 implant with
BA400 abutment

Baha Attract system

Baha True Wireless accessories

Baha 5 Super PowerSound Processor

State-of-the-art Acoustic Implants
CodacsTM

Conductive/Mixed
125

Frequency (Hz)
1000

8000

30

Hearing Loss (dB HL)

Bone Conduction Implants

Middle Ear Implants

Direct Acoustic
Cochlear Implants

Cochlear Implants

Codacs™ System
The most powerful
acoustic implant

120

Codacs™ System

Future Technology Directions
What is in the Cochlear R&D pipeline?

1. Even Better Hearing Outcomes:
Slim Modiolar Electrode Array• Thinnest perimodiolar array 60% less volume compared to CA
 Protecting the fine structures (atraumatic design)• Consistent Perimodiolar positioning Consistent positioning close to the modiolus Closest to the nerve to optimise hearing outcomes• Ease of insertion
 Improved surgical handling Consistent surgical use
 Confidence in surgical outcomes

1st insertion Slim Modiolar
2nd insertion CA
3rd insertion reloaded Slim Modiolar

2. The Future is Wireless

Phone
Music

Nucleus 6 Sound Processor

ControlStatusBaha 5Sound
Processor

Nucleus 6
True Wireless accessories

2. The Future is Wireless –also for Clinicians

CONVENIENT
No equipment or
PC setup required
FAST
No setup time andfaster measures
SIMPLEOne button
diagnostics forless training

Portable wireless fast cochlear implant diagnostics

3. The Future is Connected –Cochlear Link

4. The Future preserves
Residual Hearing even better

Nucleus Profile implant with
Slim Straight electrodeAtraumatic electrode insertion(cochlea cross‐section)

Research drug
eluting electrode5. The Future is Binaural
BimodalTrue Wireless for Bimodal users

Bilateral Cochlear Implants

6. The Future supports different customer
segments“I love the fact that I don’t have tocare about my device”“I want to take control of my hearing
loss and excel at every stage of my life”

Out and Proud

Excel
It’s about
my life

Simplicity

DiscreetIt’s all about
the device“I don’t want others to notice I am
wearing a device”

Discreetness above allSummary: 33 year history of Innovation …
and much more to comeCochlear Implants

1982

1997

1999

1999

2003

2005

2008

2009

2011

2014

CI22

CI24M

CI24R with
Straight
Electrode

CI24R with
Contour®
Electrode

CI24R with
Contour
Advance®
Electrode

CI24RE
SeriesHybrid L24 with
Hybrid Electrode

CI500
SeriesCI422 with Slim
Straight Electrode

ProfileSeriesSound Processors

1982

1989

1994

1997

1998

2001

2002

2005

2008

2009

2013

WSP

MSP

SpectraSprint™

ESPrit™

ESPrit 22

ESPrit 3G

Freedom®

HybridNucleus® 5

Nucleus® 62016 Investor Day
28 April 2016
Australia & China
Dig Howitt
President Asia Pacific

APAC Overview••

More than half the world’s people (~4B people) and the fastest
economic growth
Accounts for ~18% of Cochlear’s revenue

APAC Revenue (Constant Currency)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2

2015

Australia: Driving growth in a developed
market• Australia has one of the highest penetrations of CI in the world at~10%• Revenue has grown consistently, 10-15% pa revenue growth over 5
years• Services (processors, accessories and other services) revenue is
growing faster than new systems sales• Australia is best practice globally for cochlear implants in newborns• Many factors will contribute to the future growth of cochlear
implantation in Australia– Demographics– Indications and outcomes– Advocacy and awarenessMarket Overview• Australia has high penetration across demographic segments– 95++% of newborns with severe to profound hearing loss are getting
1 or 2 implants – growth in line with birth rate
– Working age adults is a significant and growing segment– Seniors is the fastest growing segment• The market is funded through federal, state government grants
and private insuranceMarket growth drivers in Australia
Sustained growth in Australia is a result of multiple factors
Cochlear Surgeries in Australia• Expanded Indications orincreased acceptance driven byevidence of good outcomes

Second Ear 65+
Second Ear 18‐ 64Second Ear U18
First Ear Over 65
First Ear 18‐64
First Ear Under 18

–
–
–
–

Seniors
Bilateral
Residual hearing
Single Sided Deafness• Advocacy by clinicians• Awareness• New clinics in underserved
locations• Funding

2000

2005

2010

2015

Source: Cochlear data

World best practice for newborns
Comprehensive screening and referral process leads to earlyintervention and very good outcomes. 95+% of children
identified in newborn screening are getting implants

Newborn
Screening

Confirmed
Diagnosis

Hearing Aid
Fitting &habilitation by
3 months ofage

Appropriate
candidates to
CI by 12months ofage - often 6
or 7 months

Ongoing
habilitation
andaudiologicalmanagement

Mainstream
SchoolGenerating demand: Working age adults
and seniors• Key challenge is still awareness of boththerapy and criteria for candidacy• Building awareness through on and off line
media is critical to drive growth

Dissatisfied hearing aid users
Recapture A+ Hearing

Awareness/urgency to treat“Get Started”

Services: Melbourne Cochlear Care Centre
Concept: Provide care after implantation to create capacity at Royal Victorian Eye andEar Hospital and to build closer relationships with customers. The centre opened in March2014

Customer Comment“I was very sceptical about Cochlear’s
conflict of interest here. I have just had myfirst appointment and my clinical care was
excellent. The audiologist did educate me
about my upgrade options but I did not
feel any pressure.”• The centre provides care for over 1500 recipients in collaboration
with RVEEH (Royal Victorian Eye and Ear Hospital)• Revenue from Medicare and sales of processors and accessories• Processor and accessory sales are 50% higher than the Australian
averageChinaBuilding an emerging market business• The China market has significant opportunity for growth– Penetration is less than 0.5% (children <20%, adults <0.1%)– 90+% of implants are for children• Recent market growth is a result of a long period of investment andadvocacy• There are two major segments– National Government Tenders– Private Pay• The market is competitive and success depends on good strategy
execution

China CI overview
CI centers & surgeons# of CI center / surgeon - 2015~100

CI volume distribution – 2015

Estimated Private Pay
Market

~60%
~80
~40%

CI Centers

Surgeons

Top 20 CI
Centers

Bilateral
Total CI surgery
Other
in China
Hospitals

AdultsTop 20 CI center geographic distribution

ChildrenBeijing (4)Shandong (2)Shanghai (1)Provinces with 1
top 20 CI center
Guangdong (2)Source: Cochlear data and estimates

Cochlear history in China• Australian Government donated implant programming equipment toChina in 1993
• Cochlear established audiological and rehabilitation training from1994 in conjunction with Australian Hearing and Chinese hospitals• First surgery in mainland China in 1995
• Worked closely with China Rehabilitation Research Centre for Deaf
Children (CRRCDC). Established China-Australia Cochlear Implant
Training Centre in Beijing in 1998 with CRRCDC• Cochlear established Hong Kong office in 1997. Now offices in
Beijing, Shanghai and Chengdu• Taiwanese donation from Chang Gung Memorial Hospital (CGMH)
from 2006• National tender started in 2009 administered by CRRCDC.
Recognised the benefits of cochlear implantation in children

National tender market
National Tender• Started in 2009, continued in2016 - 2020 5 year plan
• Volume usually split into 3
tranches per year
• Goal is to provide implants tochildren with hearing loss
• Purchase decision made on
price• Low distribution and support
costs• We offer a differentiated system• Profitable on initial sale andcarries potential for futureservices revenue
Source: Cochlear data

Private pay market
Private Pay Market• Largely private pay with someprovincial/city reimbursement
and philanthropic funding• Tiered offering: technology andprices• Higher prices, higher distribution
and support costs than tender• Largely sold through distributors• Very competitive• Growing market• Purchase decision usually madeby patient but surgeon
influential

Total Annual National
Tender Volume (CY)
5,954
4,716

4,708

2013

2014

4,098

1235
500

657

2009

2010

2011

2012

2015

Market opportunities – private pay market
will continue to grow
Opportunity
Newborns andchildren

Improving Newborn hearing screening and referral,
Increasing awareness from national tender,
Increasing affordability
Increasing reimbursement coverage

AdultsAwareness and acceptance growing, especially forworking age adults,
Increasing surgeon advocacy
Improving affordability
Seniors still very early stage – future potential

Bilateral

Awareness and acceptance growing

Services

Increasing focus and promotion
Significant and growing customer base

China success factors
Execution• Capable local team• Strong relationships with surgeons• Product leadership in each tier
• Social media reach

Future growth opportunities• Working age adults• Seniors• Bilateral• Services

2016 Investor Day
28 April 2016
Direct to Consumer Marketing – USA Experience
Patricia Trautwein VP, Marketing Cochlear Americas

Direct to Consumer (DTC) Marketing
Why: The USA has a large underserved market
Who: Seniors are the fastest growing population with hearing loss
How: Leveraging data science, we define target segments and identify how tobest connect with potential customers on and offline

What: Integrated campaigns increase awareness and include unique
opportunities for peer to peer education and support throughout the process

Impact: Direct to Consumer marketing enables Cochlear to reach morepotential candidates, USA sales of cochlear implants is growing with the largest
growth seen in the senior segment in alignment with the marketing focus

USA is an aging population 1

2012Children

AdultsSeniors(<18 years)(18-64 years)(65+ years)

73M (23%)

197M (63%)

43M (14%)

313M

2X

2050

86M (21%)84M (21%)

230M (58%)

400MLife Expectancy

6

Senior Population

52012 2050
77

82

82

86

4
3

2012

2

2050

1
0
65-69

1.

70-74

75-79

80-84

85+

US Census, The Aging Nation, May 2014

Adult population in USA with hearing loss
increases with age and is underpenetrated• 48M adults in USA with hearing loss in one orboth ears 1
Hearing loss is a major public health issue thatis the third most common physicalcondition after arthritis and heart disease 2.

Total Population with hearing loss (in millions)1
HL Population (Bilateral)
HL Population ( Unilateral+Bilateral)12• 10M people in USA are hard of hearing in one orboth ears 3
3% Children
3.9% Adults
16.4% Seniors

Millions with Heairng Loss

10
8
6
4
2

• 5% penetrated for cochlear implants

1.
2.
3.

Lin et al. Hearing loss prevalence in the US http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3564588/
http://www.hearingloss.org/content/basic-facts-about-hearing-loss
US Census SIPP data, 2002, http://research.gallaudet.edu/Demographics/deaf-US.phpuld

0
20-29

30-39

40-49

50-59

60-69

70-79

80+

Lack of awareness is a barrier to growth 1% Familiar with Cochlear Implants“I thought cochlear
implants were only forpeople who are totally
deaf ”<20%
GeneralPopulation<50%
Audiologists

1. Data on file, survey conducted by PSB 2014

Seniors in the USA are online and engaged
in social networking
Youngest Seniors : 74% of seniors in the
65-69 age group go online
Affluent Seniors : 90% of seniors with anannual household income of $75,000 or
more go online
College Degree Seniors: 87% of seniors
with a college degree go online
Daily Use: Once online, most seniors
make the internet a daily part of their lives
Social: 46% of online seniors use social
networking sites

Targeted awareness maximizes effectivenessTargeted awareness maximizes effectiveness

Ageless Boomers

Connected Seniors

1.

Anna McMahan

2.

Roger Carpenter

3. Teenie Matheson
4. Gary Stevens

Driven Dynamics

Upward Bound Families

5. Michelle Thomas
6. Mike Taylor
7. Jenny King

Targeted segment campaigns to reachseniors(Sample “Boomer” Persona)Targeted segment campaigns to reachseniors(Sample “Senior” Persona)Integrated campaigns maximize
effectiveness and customer experience
FIND

CAPTURENURTURECONVERT

OnlineCall Center
SEO/SEM
Display Ads

Email Campaigns

Clinic Appointments

SocialIn Market
Concierge
Web / Landing Pages

AdvertisingCounseling Tools

CRM System

Volunteers

Scoring & Assignment

Events (HHS)

Cochlear Chapters & Chats

Candidates

Customers

PR: Radio, TV, Events

Leads

Volunteers help candidates through thejourney to better hearing

Candidates connected to volunteers
are more likely to choose a
Cochlear implant within one year

Concierge educates and supports
candidates throughout the journey
Cochlear Concierge
Unique engagement team of highly trained
professionals who educate and guidecandidates through the process to get an
hearing implant. The team includes:
•
•
•
•
•
•

Audiologists who have an implant
Audiologists who have a child with an
implant
Educators
Bilateral Recipients
Bimodal Recipients
Bilingual Specialists

The concierge team connects candidates tovolunteers and clinics in the community andwelcomes them to the Cochlear Family

Integrated campaign targeting a persona
Retargeting
Ads

SocialCall Center &Concierge

Volunteers(3400)

EventsExtensive analytics and optimization of
campaigns maximizes results

Integrated campaigns are increasing leads
and new customers (Year on Year results)
5X increase in captured leads

Conversions 34% higher

Capture Leads
FY14

FY15

Grow Customers

FY16

FY14

12000

FY16

Lead Conversions (by quarter)

300

10000

250

8000
New Lead Volumes

FY15

200

6000

150

4000

100

2000

50

0
Q1

Q2

Q3

Q4

0
Q1

Q2

Q3

Q4

USA market growth evident across age
segments
H1 Reported Growth in F16 of ~10% cochlear implant units

25%

Seniors 65 years+ are thefastest growing segment
consistent with DTC
campaign focus and US
market demographics% market growth

20%
15%
10%
5%
0%
Children

AdultsSeniors

Next Steps: Expand DTC in USA and othermarkets• Continue to optimize and extend campaigns in USA• Leverage US learning to other markets in EMEA and APAC

Search Engine
Optimization andMarketingConcierge

Volunteers

2016 Investor Day
28 April 2016
Recipient Services – USA experience
Rene’ Courtney VP, Customer Experience & Recipient
Services Cochlear Americas

Recipient Services – North America Current responsibilities
 Building capabilities
 Engagement
 UpgradesIncrease
growthandprofitability

Operational Excellence

Improvethecustomerexperience

Revenue Growth

Customer Intimacy

Overview of Recipient Services

Integrationof people,
processandsystems

Customer base growth – North America
130,000+ Customer Ears** Includes both CI & Baha

Services Revenue*(Upgrades & accessories)

Opportunities for direct engagement
Changing environment•

Clinicians experiencing growing recipient base•

Increasing sophistication of products•

Complexity of candidate indications•

Larger amount of uncompensated time

Opportunity for Cochlear• More direct engagement with recipients

Building customer experience capabilities
1

2

3

4

Connections

Directengagement

Service Delivery

Data Analysis

 Registration
 Permissions
 Gathering
contact
information

 Marketo SalesForce.com
 Face to face Outbound sales

 Service Cloud Chat, SMS,
phone, email
 Self service
 Via clinician

 Campaigns
 NPS
 ServicefailuresCreating customers for life
Optimize Hearing Outcomes
New Recipient Welcome Experience

Cochlear Family Membership Activation

Support Apps

Social Communities

Practice Tools

New Cochlear Family Members

Supporting customers for life
Build lifetime relationships
Cochlear Family
Personalized AccountCochlear StoreSocialPeer to Peer
Care &
Service Plans
Maintenance

UpgradesSubscriptions

Accessories

CX

Chat

Insurance Teams& Outbound Sales

Repair Lab

Existing family members & volunteers

Hear Always
Cochlear Link

Volunteers

Recipient outbound sales
New positions to focus on upgrade sales
Start with traditional
marketing campaigns

Navigating a complex
Insurance process

Supporting customers for life
Build lifetime relationships
Cochlear Family
Personalized AccountCochlear StoreSocialPeer to Peer
Care &
Service Plans
Maintenance

UpgradesSubscriptions

Accessories

CX

Chat

Outbound Sales &Insurance Teams

Repair Lab

Existing family members & volunteers

Hear Always
Cochlear Link

Volunteers

Cochlear Link – Cochlear benefits
Device Activation

Service Requests• ~4,800 automatic
registrations
completed• ~41,000 recipientscovered by Cochlear
Link clinics

Auto-upload of MAP
Automatic data transfer

Auto-download of MAP

Automatic data transfer

Auto registration ofcustomerequipment

ServiceRequest raisedin myCochlear
ClinicSound
Processor
shippedMAPs used by
HA team; noneed for clinic
involvement

Cochlear Link - Clinic benefits
Within Link Accounts

Cochlear Link – Recipient benefit
Within Link Accounts

Recipient upgrade campaigns
Upgrade Microsite

WOM / Social Media
Ads

EventsTraditional campaigns

INTRODUCING
NUCLEUS ® 6
Michael Noble
13059 E Peakview Ave.
Centennial, CO 80111

Nurture campaigns

Outbound teamKey Points• Growing recipient base and ongoing revenue growth• The opportunity to provide lifetime support requires anability to connect and engage with recipients• We have been building the infrastructure to do that overthe past several years• Great technology and continuing investment in service willaugment future growth

Lifetime Commitment

Celebration
Highlights:•1,200 attendees•Over 15 educationalsessions•Technical Support on
site•Product launches
onsite•Live social media,
blogs and updates•Global photo shoot &video testimonials•Market researchsessions

Disclaimer
Forward looking statements
Cochlear advises that these presentation slides contain forward
looking statements which may be subject to significant uncertainties
outside of Cochlear’s control.
No representation is made as to the accuracy or reliability of forward
looking statements or the assumptions on which they are based.
Actual future events may vary from these forward looking statements
and you are cautioned not to place undue reliance on any forward
looking statement.